During the last hearing, the top court had said that Amrapali committed a “first-degree crime” by cheating thousands of homebuyers
of their dream homes. The court had also pulled up banks and said that the financial institutions had also failed in their duty by not keeping an eye on the company’s illegal activities. The banks, the courts had said, had given loans to the company without checking if the money was used for the purpose for which it was obtained.
“Rs 3,500 crore have gone away. Due to your inaction, cheating has taken place. The banks' inaction has contributed to it. Had you taken action timely, this would not have happened,” the two-judge bench had observed.
The observation by the top court came after the auditors submitted a report that money was diverted by the Amrapali top brass and spent mostly on houses, luxury cars and weddings and also invested in shares and mutual funds. The two-judge bench is hearing a batch of petitions filed by homebuyers
who are seeking possession of around 42,000 flats booked in projects of the Amrapali group.